Approaching your retirement?
Here’s what you need to do

20% of Canadians are optimistic about their ability to save*

With just a few years until retirement, now is a critical time to evaluate all of your sources of income including real estate, insurance and investments to ensure that you have the retirement you’ve dreamed of. An IG Living Plan can give you a good look at where you stand, and offer ideas on how to improve your retirement outlook. It’s important to have a clear picture of where you are relative to your goals, and adjust where need be.

As you start to plan for retirement, here are some important questions for you to consider.

What are the different sources of income I can draw on in retirement?

Unlike during their working years when many rely on their salary for income, retirees can expect to draw an income from multiple sources. These may include any combination of the Canada/Quebec Pension Plan, Old Age Security, your Registered Retirement Savings Plan (RRSP)/Registered Retirement Income Fund (RRIF), your Tax-Free Savings Account (TFSA), non-registered investment accounts, proceeds from a real estate sale, money in a savings account, an annuity or workplace pension income, and other savings.

How does CPP work and when should I take it?

Deciding when to take CPP comes to having a good understanding of your retirement cash flow and your anticipated income needs throughout your post-working years. You’ll also want to estimate how long you think you will live.

What do I need to consider when withdrawing money from my retirement savings?

Most retirees will receive some form of guaranteed income, whether from CPP/QPP, OAS, an employer pension or an annuity. These will typically form a base to meet some of the retirement income needs. Retirement savings can then be used to supplement these sources and fill any gaps.

How you draw from your various saving vehicles will depend on many factors, including the amount in each vehicle, your current and future projected tax brackets, the accrued gains on your non-registered investments and your desire to leave certain assets to your heirs. 

Concerned about how much you have saved for retirement?

While you may have just a few years to go until retirement, it’s not too late to take action. An IG advisor can create a comprehensive financial plan to determine whether or not you’re on track to meet your retirement goals.

If you are, then just continue executing the plan. If not, then you’ll need to assess your options. If possible, you could start saving more per paycheque or adjust your spending to shore up some cash, which can then be put into an investment account. If additional savings are not possible, then you may have to look at options such as delaying your retirement date or reducing what you hope to spend in retirement. 

Speak with an IG advisor today.

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